Coffeehouse, Ferri 4-Fund, or 3-Fund Portfolio

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Posts: 31
Joined: Sat Feb 11, 2012 1:22 pm

Coffeehouse, Ferri 4-Fund, or 3-Fund Portfolio

Post by tonsofthorns »


I found the Boglehead a few years ago after reading the Coffeehouse Portfolio Book.

After reading many posts I have simplified some of my portfolios. For my wife's retirement accounts I use the Coffehouse Portfolio. For my retirement accouts I use the Ferri 4-fund approach (with a small cap tilt). For my children's education accounts I use Target Funds. All of these accounts are at Vanguard. I am 40 years old. I rebalance once a year.

Since I have not been able to pick one portfolio over the other. Should I look to simplify my portfolio's by going with one type of portfolio vs. the two (three w/ education accounts) approaches?

Thanks for your help.
Posts: 1429
Joined: Fri Mar 09, 2012 3:47 pm

Re: Coffeehouse, Ferri 4-Fund, or 3-Fund Portfolio

Post by harikaried »

There's a pretty extensive wiki article on applying an asset allocation across multiple accounts:

Asset Allocation in Multiple Accounts

In particular, you might be interested in the section "Advantages of whole portfolio allocation."

There is a [1] note for the first sentence of that page:

↑ The considerations outlined on this page are designed for an investor's long term saving and investment requirements, most notably the funding of a retirement. Shorter term goals such as funding a specific large purchase in the near to intermediate term; or investing to fund children's future college educational costs, may require that a separate asset allocation plan be designed for a specific account structure, such as a taxable account, or educational savings account.
Post Reply